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Monday May 14, 8:20 am Eastern Time
Press Release
Laser-Pacific Media Corporation Reports First Quarter
Financial Results
Company's Technological Leadership Fuels Revenue Growth
HOLLYWOOD--(BUSINESS WIRE)--May 14, 2001--Laser-Pacific Media Corporation
(Nasdaq: LPAC - news) today reported a 7.4% increase in revenues for the first quarter, paced by
continued strong momentum from its high definition and digital compression services.
For the three months ended March 31, 2001, revenues advanced to $9.9 million from $9.2 million
last year. Income from operations rose 6.6% to $1.9 million, and gross profit for the quarter
increased 5.9% to $3.1 million. Income before taxes rose 13.4% to $1.7 million from $1.5 million a
year ago.
Net income amounted to $1.4 million, or $0.17 per diluted share, compared with $1.5 million, or
$0.18 per diluted share, a year earlier. The reduction in net income is primarily attributable to
increased income tax expense. The company recognized higher income tax expenses for the 2001 first
quarter compared to the prior year, principally due to the utilization of deferred tax benefits available
in the first quarter of 2000.
``Revenues improved in almost every category of the company's services,'' said James R. Parks,
chairman and chief executive officer of Laser-Pacific. ``Our solid performance underscores the
strength of the company's core operations and technological competencies as a leading provider of
post production services to the motion picture, television and digital media industries. We continue to
be recognized by the entertainment industry for our capabilities -- receiving two DVDA Awards
during the first quarter for our work on the New Line Home Video titles, ''Next Friday`` and ''The
Cell.`` These honors highlight Laser-Pacific's skill, creativity and craftsmanship in DVD creation,
authoring and publication.''
Emory M. Cohen, president and chief operating officer, said, ``We continue to invest in what we
believe to be a large and growing market for innovative solutions addressing the creative needs of the
television and motion picture industries. While operating cautiously under the possibility of a work
stoppage for a number of months, we have been focusing on several opportunities to expand our
capacity and increase our output in digital post production. With the welcome news of an agreement
between the Writer's Guild and producers, we are proceeding with our efforts toward broadening the
company's array of services to the industry.
Laser-Pacific's financial condition remains strong. At March 31, 2001, the company reported net working capital increased 23.8% from
year-end 2000 to $7.2 million, including $7.0 million in cash and cash equivalents. Stockholders' equity advanced 8.0% to $18.6 million,
or $2.40 per share.
About Laser-Pacific Media Corporation
Laser-Pacific Media Corporation is a premier media technology company providing one of the most comprehensive offerings of post
production services to the motion picture, television and digital media industries. Well known as a leading provider of advanced high
definition services to the entertainment industry, Laser-Pacific opened the world's first digital high definition facility in March 1998.
Recognized for its pioneering work and technical innovations, the company has been awarded four Emmy(TM) awards for outstanding
achievement in engineering development, as well as numerous awards for technical excellence in the post production of television and the
authoring of DVDs.
Statements included within this news release, which are not historical in nature, may constitute forward-looking statements for the
purpose of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such
statements, which include, but are not limited to, the company's ability to enter new markets, expand services, enter strategic alliances
and consummate acquisitions, involve uncertainties, and actual results could differ from those described herein. Other factors include the
company's ability to successfully expand capacity, general economic market or business conditions, investments in new technologies,
continuation of sales levels, the risks related to the cost and availability of capital and other factors, many of which are beyond the
control of the company. Careful consideration should be given to cautionary statements made in the company's most recently filed SEC
documents, in particular, the company's 10-K and previous 10-Qs.
LASER-PACIFIC MEDIA CORPORATION
AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended
March 31,
2001 2000
Revenues $ 9,927,190 $ 9,245,739
Operating costs
Direct costs 5,799,310 5,351,431
Depreciation 998,233 939,112
Total operating costs 6,797,543 6,290,543
Gross profit 3,129,647 2,955,196
Selling, general, administrative
and other expenses 1,205,615 1,149,565
Income from operations 1,924,032 1,805,631
Interest expense 267,918 344,999
Other income 76,791 66,917
Income before income taxes 1,732,905 1,527,549
Provision for income taxes 361,409 76,400
Net income $ 1,371,496 $ 1,451,149
Net income per share - basic $ 0.18 $ 0.19
Net income per share - diluted $ 0.17 $ 0.18
Weighted average shares
outstanding - basic 7,751,295 7,718,993
Weighted average shares
outstanding - diluted 7,915,693 8,031,704
LASER-PACIFIC MEDIA CORPORATION
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
March 31, December 31,
2001 2000
(unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents $ 7,005,929 $ 4,527,042
Receivables net of allowance
for doubtful accounts 5,016,030 5,339,830
Other current assets 1,342,350 1,274,546
Total current assets 13,364,309 11,141,418
Net property and equipment 18,076,083 18,457,816
Other assets 840,745 824,082
Total assets $ 32,281,137 $ 30,423,316
Liabilities and stockholders' equity
Current liabilities:
Current installments of
notes payable to bank
and long-term debt $ 3,630,368 $ 3,489,618
Other current liabilities 2,488,309 1,797,369
Total current liabilities 6,118,677 5,286,987
Notes payable to bank and
long-term debt, less current
installments 7,589,023 7,934,387
Stockholders' equity:
Common stock, $.0001 par value.
Authorized 25,000,000 shares;
issued and outstanding 7,751,295
shares at March 31, 2001 and
7,751,295 shares at Dec. 31, 2000. 775 775
Additional paid-in capital 19,936,156 19,936,156
Accumulated deficit (1,363,494) (2,734,989)
Net stockholders' equity 18,573,437 17,201,942
Total liabilities and
stockholders' equity $ 32,281,137 $ 30,423,316
Contact:
Laser-Pacific Media Corporation
Robert McClain, 323/462-6266
investor@laserpacific.com
or
PondelWilkinson MS&L
Gary Maier/Angie Yang, 310/207-9300
investor@pondel.com
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